ZRX rallied a bit last week, initially rallying to just about the 200 Week EMA before pulling back, ending the weekly candle slightly positive around the 0.000026 level. This is a truncated albeit slightly bullish doji candle since it is a higher low following the previous week's inverted hammer in which we tested support and bounced.
(March 28, 2021 8:30PM EST)
Short-Term:
ZRX has gotten crushed since its late Jan/early Feb local top north of 0.000052, retracing roughly 60% of the early 2021 rally. ZRX's tentative bottom/local bottom earlier in March was just above the 0.786 retracement level, a rarely supportive Fibonacci retracement level but one that's currently in play. Assuming the 0.786 level holds, we could see a slow grind higher as ZRX attempts to trade above the 50 Week EMA and retest the 200 Week EMA. A break above the 200 Week EMA would be very bullish, and given that we're in a crypto bull market, would be a significant impetus to add to longs as ZRX would then be set to retest the local highs around 0.000052 and then higher. Early in the weekly session this Sunday evening EST, ZRX is rallying above the 50 Week EMA and gaining. Let's see how this week shakes out.
However, if ZRX were to pull back and fall below the 50 Week EMA, that would open the door to revisit the local lows around 0.000022 again and possibly 0.00002. This level would absolutely need to hold, else we could see a quick drop to the 0.00001 level, resulting in a 100% retracement of this Jan-Feb rally. I don't think that's particularly likely, as we are in a bull market, so it's really a matter of seeing what Bitcoin does and how alts react. Sometimes alts rise with the rising tide of Bitcoin, other times they bleed in satoshis. Follow us and we'll update in real time.
Fundamentals:
0x (ZRX) is one of the most legitimate and rapidly-growing DeFi projects and provides a tremendous amount of value to DEXs and AMMs alike, providing tight spreads and cheaper fees than that of even Uniswap, not to mention 0x singlehandedly built Matcha which is 100% powered by 0x's protocol. If there's one DeFi project with a valid usecase, increasing market growth, and tremendous upside, it's 0x, which makes its ZRX token so promising.
Altcoins have been susceptible to similar exponential pumps as of late as money rotates out of large-cap cryptos during sideways consolidation periods (however brief) and new money enters the space that is already outpriced from larger-caps, leaving them to choose from a wide selection of alts. Alts also sometimes benefit from rallies of large-caps like Bitcoin and Ethereum that cause altcoins to rise with the tide, though this is mostly a phenomenon that occurs during bull markets, which we're currently in. In all, I believe ZRX to be tremendous value at these levels and expect it to be among one of the most prominent (if not the most sexy) DeFi projects and usecases as the world genuinely becomes exposed to DeFi for the first time and it starts to enter their lives.
From my perspective, which is predicated heavily on fundamental and technical data as shared with all of you, all signs indicate it's probably wise to buy ZRX or earn ZRX now before prices continue to ascend in dramatic throughout the rest of 2021 and further.
Support:
0.764 Fibonacci retracement level around 0.00002045
Double-bottom (floor) at 0.00001
Resistance:
200 Week EMA around 0.00002935 with added resistance of 0.00003, then 0.00004, and 0.00005. A break above 0.00005 would be extremely bullish and take out the local high formed in late January.
